Homework _ 4_Week 6 - ECN510 Homework for Week 6 33 points...

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ECN510 Homework for Week 6 Name_______________________________ 33 points Dr. Jay Jiwani,CFE Refer to Chapter 6 (Baye) The Principal-Agent Problem: You are hired as a management consultant to provide recommendations on how to stimulate productivity of the manufacturing firm that produces Printer Cartridges. Your 50% of the variable salary (consulting fee) is directly tied with manufacturing firm’s productivity and employees’ turnover ratio. You will be paid 25% of the variable salary by the end of this current year, and the remaining balance will be paid in the following year. How would you design a specific customized compensation plan for Agent-Principal (owners, managers, and employees) that would address both increased productivity and decreased turnover? And how would you measure productivity? The next 3 questions refer to the following: A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000 while a market researcher
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Homework _ 4_Week 6 - ECN510 Homework for Week 6 33 points...

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